Citigroup Optimistic on GM's EV Cost Realignment, Raises Price Target to $98
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Source: CNBC
- Earnings Growth Outlook: Citigroup analysts believe that General Motors' fourth-quarter electric vehicle cost realignment will support profit margins and earnings growth, with the 2026 earnings estimate raised from $11.50 to $12.25, indicating sustained improvement in profitability.
- Price Target Increase: Citigroup raised GM's 12-month price target by 12% from $86 to $98, reflecting analysts' optimistic outlook on the company's future performance, with the new target approximately 18% above Friday's closing price.
- One-Time Charge Impact: GM will incur a $6 billion one-time charge in the fourth quarter to realign electric vehicle costs and capacity, primarily for settling contract cancellations and supplier settlements, which will lower future operating expenses and enhance financial performance.
- Market Share Gains: GM's production and pricing have exceeded expectations, and Citigroup believes that market share gains, improved product alignment with market trends, and cost reductions will justify a higher valuation multiple, reflecting the company's competitive advantage post-pandemic.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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